,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ejee ,,in ,,the ,,house ,,of ,,representatives ,july #aj1 #bjad ,mr4 ,delaney 7for himself1 ,mr4 ,carney1 ,mr4 ,himes1 ,mr4 ,polis1 ,mr4 ,david ,scott of ,georgia1 ,mr4 ,murphy of ,florida1 ,mr4 ,heck of ,washington1 ,ms4 ,sinema1 ,mr4 ,meeks1 ,mr4 ,foster1 ,mr4 ,welch1 ,mr4 ,owens1 and ,mr4 ,quigley7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to reform the housing finance system of the ,united ,states1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,partnership to ,strengthen ,homeownership ,act of #bjad4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,sec4 #b4 ,definitions4 ,title ,i--,ginnie ,mae ,sec4 #aja4 ,removal from ,,hud2 establishment as independent entity4 ,sec4 #ajb4 ,transfer to ,ginnie ,mae of powers1 personnel1 and property of ,,fhfa4 ,sec4 #ajc4 ,regulation of market participants and aggregators4 ,sec4 #ajd4 ,regulatory consultation and coordination4 ,title ,,ii--,securitization and insurance ,sec4 #bja4 ,issuing ,platform4 ,sec4 #bjb4 ,insurance4 ,sec4 #bjc4 ,authority to protect taxpayers in unusual and exigent market conditions4 ,sec4 #bjd4 ,servicing rights2 representations and warranties4 ,sec4 #bje4 ,federal ,home ,loan ,banks4 ,title ,,iii--,wind down of ,fannie ,mae and ,freddie ,mac ,sec4 #cja4 ,limitation on business4 ,sec4 #cjb4 ,risk-sharing pilot programs4 ,sec4 #cjc4 ,continued conservatorship4 ,sec4 #cjd4 ,mandatory receivership4 ,sec4 #cje4 ,repeal of enterprise charters4 ,sec4 #cjf4 ,ginnie ,mae authority regarding timing4 ,title ,,iv--,multifamily housing finance ,sec4 #dja4 ,establishment of multifamily subsidiaries4 ,sec4 #djb4 ,disposition of multifamily businesses4 ,sec4 #djc4 ,approval and supervision of multifamily guarantors4 ,sec4 #djd4 ,other forms of multifamily risk-sharing4 ,sec4 #dje4 ,ginnie ,mae securitization of ,,fha risk-sharing loans4 ,title ,v--,affordable ,housing ,sec4 #eja4 ,affordable housing allocations4 ,sec4 #ejb4 ,housing ,trust ,fund4 ,sec4 #ejc4 ,capital ,magnet ,fund4 ,sec4 #ejd4 ,market ,access ,fund4 ,title ,,vi--,general ,provisions ,sec4 #fja4 ,rule of construction regarding ,senior ,preferred ,stock ,purchase ,agreements4 ,sec4 #fjb4 ,treatment of community development financial institution4 #b4 ,definitions ,for purposes of this ,act3 7#a7 ,banking definitions ,the term bank and savings association have the meaning given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,certification date ,the term certification date means the earlier of-- 7,a7 the date on which ,ginnie ,mae makes the certification described under section #bja7;h72 and 7,b7 the date that is the end of the #b-year period beginning on the date of the enactment of this ,act4 7#c7 ,charter ,act ,the term charter ,act means-- 7,a7 with respect to the ,federal ,national ,mortgage ,association1 the ,federal ,national ,mortgage ,association ,charter ,act 7#ab ,u4,s4,c4 #agaf et seq472 and 7,b7 with respect to the ,federal ,home ,loan ,mortgage ,corporation1 the ,federal ,home ,loan ,mortgage ,corporation ,act 7#ab ,u4,s4,c4 #adea et seq474 7#d7 ,credit union ,the term credit union means any ,federal credit union or ,state credit union1 as such terms are defined under section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#e7 ,director ,the term ,director means the ,director of ,ginnie ,mae1 as such position is established pursuant to the amendments made by section #aja7;c77#a74 7#f7 ,eligible mortgage ,the term eligible mortgage-- 7,a7 has the meaning given the term qualified mortgage under section #abi;,c7b77#b77;,a7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c71 as such meaning may be adjusted by the ,director if the ,director determines such adjustment is appropriate2 and 7,b7 includes such other minimum standards as may be established by the ,platform1 to ensure the quality of mortgages used to collateralize mortgage-backed securities issued by the ,platform4 7#g7 ,eligible multifamily mortgage loan ,the term eligible multifamily mortgage loan means a commercial real estate loan-- 7,a7 secured by a property with-- 7i7 #e or more residential units2 or 7ii7 #b or more residential units1 if the requirement under clause 7i7 is waived by the ,director for purposes of carrying out a demonstration or pilot program2 7,b7 the primary source of repayment for which is expected to be derived from rental income generated by the property2 7,c7 the term of which may not be less than #e years but not more than #dj years2 7,d7 that satisfies any additional underwriting criteria established by the ,director to balance supporting access to capital with managing credit risk to the ,fund1 including-- 7i7 a maximum loan-to-value ratio2 7ii7 a minimum debt service coverage ratio2 and 7iii7 considerations for restrictive or special uses of a property1 including non-residential uses1 properties for seniors1 manufactured housing1 and affordability restrictions1 and the impact of such uses on clauses 7i7 and 7ii72 and 7,e7 that satisfies any additional underwriting criteria that may be established by the ,director4 7#h7 ,enterprise ,the term enterprise means-- 7,a7 the ,federal ,national ,mortgage ,association and any affiliate thereof2 and 7,b7 the ,federal ,home ,loan ,mortgage ,corporation and any affiliate thereof4 7#i7 ,fund ,the term ,fund means the insurance fund established under section #bjb7;g74 7#aj7 ,ginnie ,mae ,the term ,ginnie ,mae means the ,government ,national ,mortgage ,association4 7#aa7 ,market participant ,the term market participant means any insurance company1 bank1 saving association1 credit union1 or real estate investment trust insuring or reinsuring any part of a security issued by the ,platform4 7#ab7 ,participating aggregator ,the term participating aggregator means an aggregator of eligible mortgages that collateralize mortgage-backed securities issued by the ,platform pursuant to title ,,ii4 7#ac7 ,platform ,the term ,platform means the ,issuing ,platform established under section #bja7;a74 7#ad7 ,real estate investment trust ,the term real estate investment trust has the meaning given such term under section #hef7;a7 of the ,internal ,revenue ,code of #aihf4 ,i ,ginnie ,mae #aja4 ,removal from ,,hud2 establishment as independent entity 7a7 ,in general ,paragraph 7#b7 of section #cjb7;a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agag7;a77#b77 is amended by striking in the ,department of ,housing and ,urban ,development and inserting independent of any other agency or office in the ,federal ,government4 7b7 ,conforming amendments ,title ,,iii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaf et seq47 is amended-- 7#a7 in section #cjf7;g77#c77;,d7 7#ab ,u4,s4,c4 #agba7;g77#c77;,d771 by striking ,secretary and inserting ,association2 7#b7 in section #cjg 7#ab ,u4,s4,c4 #agbb71 by striking ,secretary of ,housing and ,urban ,development and inserting ,association2 and 7#c7 in section #cag 7#ab ,u4,s4,c4 #agbc;i7-- 7,a7 in subsection 7a77#a71 by striking ,secretary of ,housing and ,urban ,development and inserting ,director of the ,association2 7,b7 in subsection 7c77#d71 by striking ,secretary's and inserting ,director of the ,association's2 7,c7 in subsection 7d77#a71 by striking ,secretary's and inserting ,director of the ,association's2 7,d7 in the heading for subsection 7f71 by striking by ,secretary2 and 7,e7 by striking ,secretary each place such term appears and inserting ,director of the ,association4 7c7 ,management2 ,director 7#a7 ,independence and term ,subsection 7a7 of section #cjh of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agbc7;a77 is amended-- 7,a7 in the first sentence-- 7i7 by striking ,secretary of ,housing and ,urban ,development and inserting ,director of the ,association appointed pursuant to this subsection2 and 7ii7 by striking of the ,secretary and inserting of the ,director2 7,b7 in the second sentence1 by striking ,secretary and inserting ,director2 7,c7 in the third sentence-- 7i7 by striking in the ,department of ,housing and ,urban ,development2 and 7ii7 by inserting before the period at the end the following3 1 and shall be appointed for a term of #e years1 unless removed before the end of such term for cause by the ,president2 7,d7 in the last sentence1 by striking ,secretary and inserting ,director2 and 7,e7 by adding at the end the following undesignated paragraph3 ,a vacancy in the position of ,director that occurs before the expiration of the term for which a ,director was appointed shall be filled in the manner established under paragraph 7#a71 and the ,director appointed to fill such vacancy shall be appointed only for the remainder of such term4 ,if the ,senate has not confirmed a ,director1 the ,president may designate either the individual nominated but not yet confirmed for the position of ,director or another individual1 to serve as the ,acting ,director1 and such ,acting ,director shall have all the rights1 duties1 powers1 and responsibilities of the ,director1 until such time as a ,director is confirmed by the ,senate4 ,an individual may serve as the ,director after the expiration of the term for which appointed until a successor has been appointed or confirmed4 4 7#b7 ,conforming amendment ,section #ecae of title #e1 ,united ,states ,code1 is amended1 in the item relating to the ,president of the ,government ,national ,mortgage ,association1 by striking 4 ,department of ,housing and ,urban ,development4 7d7 ,membership on ,,fsoc ,the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended-- 7#a7 in section #b1 by amending paragraph 7#ab77;,e7 to read as follows3 7,e7 the ,government ,national ,mortgage ,association1 with respect to-- 7i7 the ,mortgage ,insurance ,fund established under section #bjb7;g7 of the ,partnership to ,strengthen ,homeownership ,act of #bjad2 and 7ii7 the ,federal ,home ,loan ,banks or the ,federal ,home ,loan ,bank ,system4 2 and 7#b7 in section #aaa7;b77#a77;,h71 by striking ,director of the ,federal ,housing ,finance ,agency and inserting ,director of the ,government ,national ,mortgage ,association4 7e7 ,personnel ,subsection 7d7 of section #cji of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agbc;a7d77 is amended by striking 7d77#a7 and all that follows through the end of paragraph 7#a7 and inserting the following3 7d7 ,personnel 7#a7 ,ginnie ,mae 7,a7 ,in general ,the ,director of the ,association may appoint and fix the compensation of such officers and employees of the ,association as the ,director considers necessary to carry out the functions of the ,association4 ,officers and employees may be paid without regard to the provisions of chapter #ea and subchapter ,,iii of chapter #ec of title #e1 ,united ,states ,code1 relating to classification and ,general ,schedule pay rates4 7,b7 ,development of human resources ,in carrying out this subsection1 ,ginnie ,mae shall appoint and develop human capital 7which shall have such meaning as determined by ,ginnie ,mae1 in consultation with the ,board of ,governors of the ,federal ,reserve1 taking into consideration differences between the banking and insurance industries7 necessary to ensure that it possesses sufficient expertise regarding the insurance industry and insurance issues4 7,c7 ,comparability of compensation with federal banking agencies ,in fixing and directing compensation under subparagraph 7,a71 the ,director of the ,association shall consult with1 and maintain comparability with1 compensation of officers and employees of the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 and the ,federal ,deposit ,insurance ,corporation4 7,d7 ,personnel of other federal agencies ,in carrying out the duties of the ,association1 the ,director of the ,association may use information1 services1 staff1 and facilities of any executive agency1 independent agency1 or department on a reimbursable basis1 with the consent of such agency or department4 7,e7 ,outside experts and consultants ,notwithstanding any provision of law limiting pay or compensation1 the ,director of the ,association may appoint and compensate such outside experts and consultants as such ,director determines necessary to assist the work of the ,association4 4 7f7 ,transitional provision ,notwithstanding this section and the amendments made by this section1 during the period beginning on the date of the enactment of this ,act1 and ending on the date on which the ,director of the ,government ,national ,mortgage ,association is appointed and confirmed pursuant to section #cjh of the ,national ,housing ,act1 as amended by this section1 the person serving as the ,president of the ,government ,national ,mortgage ,association on that effective date shall act for all purposes as1 and with the full powers of1 the ,director of the ,association4 7g7 ,references ,on and after the date of the enactment of this ,act1 any reference in ,federal law to the ,president of the ,government ,national ,mortgage ,association or to such ,association shall be deemed to be a reference to such ,director of such ,association or to such ,association1 as appropriate1 as organized pursuant to this subsection and the amendments made by this section4 #ajb4 ,transfer to ,ginnie ,mae of powers1 personnel1 and property of ,,fhfa 7a7 ,powers and duties transferred 7#a7 ,federal ,home ,loan ,bank functions transferred 7,a7 ,transfer of functions ,there are transferred to ,ginnie ,mae and the ,director of ,ginnie ,mae all functions of the ,federal ,housing ,finance ,agency and the ,director of the ,federal ,housing ,finance ,agency1 respectively4 7,b7 ,powers1 authorities1 rights1 and duties ,ginnie ,mae and the ,director of ,ginnie ,mae shall succeed to all powers1 authorities1 rights1 and duties that were vested in the ,federal ,housing ,finance ,agency and the ,director of the ,federal ,housing ,finance ,agency1 respectively1 including all conservatorship or receivership authorities1 on the day before the transfer date in connection with the functions and authorities transferred under subparagraph 7,a74 7,c7 ,transfer date ,the transfer of functions under this paragraph shall take effect upon the expiration of the #f-month period beginning on the date of the enactment of this ,act4 7#b7 ,continuation and coordination of certain actions 7,a7 ,in general ,all regulations1 orders1 determinations1 and resolutions described under subparagraph 7,b7 shall remain in effect according to the terms of such regulations1 orders1 determinations1 and resolutions1 and shall be enforceable by or against ,ginnie ,mae until modified1 terminated1 set aside1 or superseded in accordance with applicable law by ,ginnie ,mae1 any court of competent jurisdiction1 or operation of law4 7,b7 ,applicability ,a regulation1 order1 determination1 or resolution is described under this subparagraph if it-- 7i7 was issued1 made1 prescribed1 or allowed to become effective by-- 7,i7 the ,federal ,housing ,finance ,agency2 or 7,,ii7 a court of competent jurisdiction1 and relates to functions transferred by this subsection2 7ii7 relates to the performance of functions that are transferred by this subsection2 and 7iii7 is in effect on the transfer date under paragraph 7#a77;,c74 7#c7 ,disposition of affairs ,during the period preceding the transfer date under paragraph 7#a77;,c71 the ,director of the ,federal ,housing ,finance ,agency1 for the purpose of winding up the affairs of the ,federal ,housing ,finance ,agency in connection with the performance of functions that are transferred by this section-- 7,a7 shall manage the employees of such ,agency and provide for the payment of the compensation and benefits of any such employees which accrue before such transfer date2 and 7,b7 may take any other action necessary for the purpose of winding up the affairs of the ,office4 7#d7 ,use of property and services 7,a7 ,property ,ginnie ,mae may use the property and services of the ,federal ,housing ,finance ,agency to perform functions which have been transferred to ,ginnie ,mae until such time as the ,agency is abolished under subsection 7c7 to facilitate the orderly transfer of functions transferred under this subsection1 any other provision of this ,act1 or any amendment made by this ,act to any other provision of law4 7,b7 ,agency services ,any agency1 department1 or other instrumentality of the ,united ,states1 and any successor to any such agency1 department1 or instrumentality1 that was providing supporting services to the ,agency before the transfer date in connection with functions that are transferred to ,ginnie ,mae shall-- 7i7 continue to provide such services1 on a reimbursable basis1 until the transfer of such functions is complete2 and 7ii7 consult with any such agency to coordinate and facilitate a prompt and reasonable transition4 7#e7 ,continuation of services ,ginnie ,mae may use the services of employees and other personnel of the ,federal ,housing ,finance ,agency1 on a reimbursable basis1 to perform functions which have been transferred to ,ginnie ,mae for such time as is reasonable to facilitate the orderly transfer of functions pursuant to this subsection1 any other provision of this ,act1 or any amendment made by this ,act to any other provision of law4 7#f7 ,savings provisions 7,a7 ,existing rights1 duties1 and obligations not affected ,paragraph 7#a7 and subsection 7c7 shall not affect the validity of any right1 duty1 or obligation of the ,united ,states1 the ,director of the ,federal ,housing ,finance ,agency1 the ,federal ,housing ,finance ,agency1 or any other person1 that existed on the day before the transfer date under paragraph 7#a77;,c74 7,b7 ,continuation of suits ,no action or other proceeding commenced by or against the ,director of the ,federal ,housing ,finance ,agency in connection with the functions that are transferred to ,ginnie ,mae under this subsection shall abate by reason of the enactment of this ,act1 except that ,ginnie ,mae shall be substituted for the ,director of the ,federal ,housing ,finance ,agency as a party to any such action or proceeding4 7b7 ,transfer and rights of employees of ,,fhfa 7#a7 ,transfer ,each employee of the ,federal ,housing ,finance ,agency that is employed in connection with functions that are transferred to ,ginnie ,mae under subsection 7a7 shall be transferred to ,ginnie ,mae for employment1 not later than the transfer date under subsection 7a77#a77;,c71 and such transfer shall be deemed a transfer of function for purposes of section #cejc of title #e1 ,united ,states ,code4 7#b7 ,status of employees ,the transfer of functions under this section1 and the abolishment of the ,federal ,housing ,finance ,agency under subsection 7c71 may not be construed to affect the status of any transferred employee as an employee of an agency of the ,united ,states for purposes of any other provision of law4 7#c7 ,guaranteed positions ,each employee transferred under paragraph 7#a7 shall be guaranteed a position with the same status1 tenure1 grade1 and pay as that held on the day immediately preceding the transfer4 7#d7 ,appointment authority for excepted employees 7,a7 ,in general ,in the case of an employee occupying a position in the excepted service1 any appointment authority established under law or by regulations of the ,office of ,personnel ,management for filling such position shall be transferred1 subject to subparagraph 7,b74 7,b7 ,decline of transfer ,ginnie ,mae may decline a transfer of authority under subparagraph 7,a71 to the extent that such authority relates to a position excepted from the competitive service because of its confidential1 policymaking1 policy-determining1 or policy-advocating character4 7#e7 ,reorganization ,if ,ginnie ,mae determines1 after the end of the #a-year period beginning on the transfer date under subsection 7a77#a77;,c71 that a reorganization of the combined workforce is required1 that reorganization shall be deemed a major reorganization for purposes of affording affected employee retirement under section #hccf7;d77#b7 or #hdad7;b77#a77;,b7 of title #e1 ,united ,states ,code4 7#f7 ,employee benefit programs 7,a7 ,in general ,any employee of the ,federal ,housing ,finance ,agency accepting employment with ,ginnie ,mae as a result of a transfer under paragraph 7#a7 may retain1 for #ab months after the date on which such transfer occurs1 membership in any employee benefit program of the ,agency or ,ginnie ,mae1 as applicable1 including insurance1 to which such employee belongs on the transfer date under subsection 7a77#a77;,c7 if-- 7i7 the employee does not elect to give up the benefit or membership in the program2 and 7ii7 the benefit or program is continued by ,ginnie ,mae4 7,b7 ,cost differential 7i7 ,in general ,the difference in the costs between the benefits which would have been provided by the ,federal ,housing ,finance ,agency and those provided by this subsection shall be paid by ,ginnie ,mae4 7ii7 ,health ,insurance ,if any employee elects to give up membership in a health insurance program or the health insurance program is not continued by ,ginnie ,mae1 the employee shall be permitted to select an alternate ,federal health insurance program not later than #cj days after the date of such election or notice1 without regard to any other regularly scheduled open season4 7c7 ,abolishment of ,,fhfa ,effective upon the transfer date under subsection 7a77#a77;,c71 the ,federal ,housing ,finance ,agency and the position of the ,director of the ,federal ,housing ,finance ,agency are abolished4 7d7 ,transfer of property and facilities ,effective upon the transfer date under subsection 7a77#a77;,c71 all property of the ,federal ,housing ,finance ,agency shall transfer to ,ginnie ,mae4 7e7 ,references in ,federal law ,on and after the transfer date under subsection 7a77#a77;,c71 any reference in ,federal law to the ,director of the ,federal ,housing ,finance ,agency or the ,federal ,housing ,finance ,agency1 in connection with any function of the ,director of the ,federal ,housing ,finance ,agency or the ,federal ,housing ,finance ,agency transferred under subsection 7a71 shall be deemed a reference to the ,director of the ,government ,national ,mortgage ,association or the ,government ,national ,mortgage ,association1 as appropriate and consistent with the amendments made by this ,act4 #ajc4 ,regulation of market participants and aggregators 7a7 ,approval authority ,the ,platform shall be available for use only by originators and aggregators of mortgages who meet standards for eligibility for such use1 as shall be established by the ,director of ,ginnie ,mae 7in this section referred to as the ,director74 7b7 ,general supervisory and regulatory authority ,pursuant to the authority under subsection 7a73 7#a7 ,in general ,all market participants and participating aggregators shall1 to the extent provided in this section1 be subject to the supervision and regulation of the ,director4 7#b7 ,authority over market participants and participating aggregators ,ginnie ,mae shall have general regulatory authority over each market participant and participating aggregator and shall exercise such general regulatory authority to ensure that the purposes of this section are carried out4 7c7 ,principal duties ,among the principal duties of the ,director pursuant to subsection 7b7 shall be-- 7#a7 to oversee the prudential operations of each market participant and participating aggregator2 and 7#b7 to ensure that-- 7,a7 each market participant and participating aggregator operates in a safe and sound manner1 including maintenance of adequate capital and internal controls2 and 7,b7 each market participant and participating aggregator complies with this section and the rules1 regulations1 guidelines1 and orders issued under this section4 7d7 ,prudential management and operations standards 7#a7 ,establishment ,the ,director shall establish prudential standards1 by regulation or guideline1 for market participants and participating aggregators to-- 7,a7 ensure-- 7i7 the safety and soundness of market participants and participating aggregators2 and 7ii7 the maintenance of approval standards by market participants and participating aggregators2 and 7,b7 minimize the risk presented to the ,fund4 7#b7 ,recognition of distinctions ,in carrying out the requirement under paragraph 7#a71 the ,director shall distinguish between prudential standards for market participants and such standards for participating aggregators4 7e7 ,authority ,to require reports 7#a7 ,regular reports ,the ,director may require1 by general or specific orders1 a market participant or participating aggregator to submit regular reports1 including financial statements determined on a fair value basis1 on the condition 7including financial condition71 management1 activities1 or operations of the market participant or participating aggregator1 as the ,director considers appropriate4 7#b7 ,special reports ,the ,director may require1 by general or specific orders1 a market participant or participating aggregator to submit special reports on any of the topics specified in paragraph 7#a7 or any other relevant topics1 if1 in the judgment of the ,director1 such reports are necessary to carry out the purposes of this ,act4 7f7 ,examinations and audits ,the ,director may conduct such examinations and audits1 including on-site examinations and audits1 of market participants and participating aggregators as the ,director considers appropriate to ensure compliance with this ,act1 to determine the condition of market participants and participating aggregators for the purpose of determining and ensuring their financial safety and soundness1 and otherwise in any case that the ,director determines an examination is necessary or appropriate4 7g7 ,conflict of interest standards ,the ,director shall establish standards1 by regulation or guideline1 for market participants and participating aggregators as the ,director considers appropriate to avoid any conflicts of interest among market participants4 7h7 ,stress tests for sufficient capital ,the ,director1 in consultation with the ,board of ,governors of the ,federal ,reserve1 shall-- 7#a7 establish and carry out such risk-based capital tests as appropriate to evaluate whether each market participant and participating aggregator is maintaining a level of capital sufficient to absorb losses and support operations during adverse economic conditions so that they do not pose undue risks to their communities1 other institutions1 or the broader economy2 and 7#b7 establish capital standards for market participants and participating aggregators based on such tests1 which shall include the following classifications3 well capitalized1 adequately capitalized1 undercapitalized1 significantly undercapitalized1 and critically undercapitalized4 7i7 ,enforcement ,the ,corporation shall have the authority to enforce the provisions of this ,act with respect to market participants and participating aggregators1 in the same manner and to the same extent as the ,federal ,deposit ,insurance ,corporation has with respect to insured depository institutions under the provisions of subsections 7b7 through 7n7 of section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah74 7j7 ,requirement ,to maintain approved status 7#a7 ,authority to issue order ,if the ,director determines that a market participant or a participating aggregator under this section no longer meets the standards for such approval or violates the requirements under this ,act1 including any standards1 regulations1 or orders promulgated in accordance with this ,act1 the ,director may-- 7,a7 suspend or revoke the status of the market participant or participating aggregator as approved to utilize the ,platform2 or 7,b7 take any other action with respect to such market participant or a participating aggregator as may be authorized under this ,act4 7#b7 ,rule of construction ,the suspension or revocation of the approved status of a market participant or a participating aggregator under this section shall have no effect on the status as an insured security of any security collateralized by eligible mortgages and insured prior to the suspension or revocation4 7#c7 ,publication ,the ,director shall-- 7,a7 promptly publish a notice in the ,federal ,register upon suspension or revocation of the approval of any market participant or a participating aggregator2 and 7,b7 maintain an updated list of such approved market participants and participating aggregators on the website of ,ginnie ,mae4 7#d7 ,definition ,in this subsection1 the term violate includes any action1 taken alone or with others1 for or toward causing1 bringing about1 participating in1 counseling1 or aiding or abetting1 a violation of the requirements under this ,act4 7k7 ,resolution authority 7#a7 ,in general ,notwithstanding any other provision of ,federal law1 the law of any ,state1 or the constitution of any ,state1 the ,director shall-- 7,a7 have the authority to act1 in the same manner and to the same extent1 with respect to a market participant or participating aggregator that the ,director determines pursuant to is classified as critically undercapitalized pursuant to subsection 7h77#b71 as the ,federal ,deposit ,insurance ,corporation has with respect to insured depository institutions under subsections 7c7 through 7s7 of section #aa of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba71 section #ab of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbb71 and section #ac of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc71 while tailoring such actions to the specific business model of the market participant or participating aggregator1 as the case may be1 as may be necessary to properly exercise such authority under this subsection2 7,b7 in carrying out any authority provided under subparagraph 7,a71 act1 in the same manner and to the same extent1 with respect to the ,fund as the ,federal ,deposit ,insurance ,corporation may act with respect to the ,deposit ,insurance ,fund under the provisions of the ,federal ,deposit ,insurance ,act set forth in subparagraph 7,a72 and 7,c7 consistent with the authorities provided in subparagraph 7,a71 immediately place an insolvent market participant or participating aggregator into receivership4 7#b7 ,rule of construction ,notwithstanding paragraph 7#a71 if an insolvent participating aggregator is an insured depository institution or an affiliate of an insured depository institution1 the ,director shall recommend1 in writing1 to such participating aggregator's appropriate ,federal banking agency or ,state banking regulator to resolve such participating aggregator pursuant to section #aa7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7;c77 and other appropriate sections of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 or appropriate ,federal or ,state law1 as applicable4 7#c7 ,least-cost resolution required ,the ,director may not exercise any authority under paragraph 7#a7 with respect to any market participant or any participating aggregator that is not an insured depository institution or an affiliate of an insured depository institution1 unless-- 7,a7 the ,director determines that the exercise of such authority is necessary to ensure proper and continued functioning of the secondary mortgage market2 and 7,b7 the total amount of the expenditures by the ,director and obligations incurred by the ,director in connection with the exercise of any such authority with respect to such market participant or participating aggregator is the least costly to the ,fund1 consistent with the least cost approach specified in the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq471 of all possible methods for meeting ,ginnie ,mae's obligations under this ,act and expeditiously concluding its resolution activities4 7#d7 ,taxpayer protection ,the ,director1 in carrying out any authority provided in this subsection1 shall ensure that any amounts owed to the ,united ,states1 unless the ,united ,states agrees or consents otherwise1 shall have priority following administrative expenses of the receiver when satisfying unsecured claims against a market participant or participating aggregator1 or the receiver therefor1 that are proven to the satisfaction of the receiver4 #ajd4 ,regulatory consultation and coordination 7a7 ,consultation permitted ,the ,director may1 in carrying out any duty1 responsibility1 requirement1 or action authorized under this ,act1 consult with the ,federal regulatory agencies1 any individual ,federal regulatory agency1 the ,secretary of the ,treasury1 any ,state banking regulator1 any ,state insurance regulator1 and any other ,state agency1 as the ,director necessary and appropriate4 7b7 ,coordination required ,the ,director shall1 as appropriate1 in carrying out any duty1 responsibility1 requirement1 or action authorized under this ,act1 coordinate with the ,federal regulatory agencies1 any individual ,federal regulatory agency1 the ,secretary of the ,treasury1 any ,state banking regulator1 any ,state insurance regulator1 any other ,state agency4 7c7 ,avoidance of duplication ,to the fullest extent possible1 the ,director shall-- 7#a7 avoid duplication of examination activities1 reporting requirements1 and requests for information2 7#b7 rely on examination reports made by other ,federal or ,state regulatory agencies relating to an approved entity and its subsidiaries1 if any2 and 7#c7 ensure that market participants and participating aggregators are not subject to conflicting supervisory demands by ,ginnie ,mae and other ,federal regulatory agencies4 7d7 ,protection of privileges 7#a7 ,in general ,pursuant to the authorities provided under subsections 7a7 and 7b71 to facilitate the consultative process and coordination1 the ,director may share information with the ,federal regulatory agencies1 any individual ,federal regulatory agency1 the ,secretary of the ,treasury1 any ,state bank supervisor1 any ,state insurance regulator1 any other ,state agency1 or any foreign banking authority1 on a one-time1 regular1 or periodic basis1 as determined by the ,director1 regarding the capital assets and liabilities1 financial condition1 risk management practices1 or any other practice of any market participant or participating aggregator4 7#b7 ,privilege preserved ,information shared by the ,director pursuant to paragraph 7#a7 shall not be construed as waiving1 destroying1 or otherwise affecting any privilege or confidential status that any market participant1 participating aggregator1 or any other person may claim with respect to such information under ,federal or ,state law as to any person or entity other than such agencies1 agency1 supervisor1 or authority4 7#c7 ,rule of construction ,no provision of this subsection may be construed as implying or establishing that-- 7,a7 any person waives any privilege applicable to information that is shared or transferred under any circumstance to which this subsection does not apply2 or 7,b7 any person would waive any privilege applicable to any information by submitting the information directly to the ,federal regulatory agencies1 any individual ,federal regulatory agency1 any ,state bank supervisor1 any ,state insurance regulator1 any other ,state agency1 or any foreign banking authority1 but for this subsection4 7e7 ,federal agency authority preserved ,unless otherwise expressly provided by this section1 no provision of this section shall limit or be construed to limit1 in any way1 the existing authority of any ,federal agency4 7f7 ,federal regulatory agency ,for purposes of this section1 the term ,federal regulatory agency means1 individually1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,office of the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 the ,bureau of ,consumer ,financial ,protection1 the ,national ,credit ,union ,administration1 the ,securities and ,exchange ,commission1 the ,commodity ,futures ,trading ,commission1 and the ,federal ,housing ,finance ,agency4 ,,ii ,securitization and insurance #bja4 ,issuing ,platform 7a7 ,establishment 7#a7 ,in general ,there is established within ,ginnie ,mae an entity to be known as the ,issuing ,platform 7the ,platform71 which shall issue standardized mortgage-backed securities to increase homogeneity in the eligible securities market4 7#b7 ,authorities ,the ,platform may-- 7,a7 make contracts1 incur liabilities1 and borrow money2 7,b7 purchase1 sell1 receive1 hold1 and use real and personal property2 7,c7 create1 execute1 and administer trusts2 and 7,d7 take such actions as the ,platform determines are necessary or incidental to carry out the ,platform's duties under this ,act4 7b7 ,delivery of pool to the ,platform ,a mortgage originator or aggregator that wishes to make use of the ,platform and have ,ginnie ,mae insure the securities issued by the ,platform shall deliver to the ,platform a pool of eligible mortgage loans4 7c7 ,securitization ,the ,platform shall1 upon receiving a pool of eligible mortgages-- 7#a7 create standardized mortgage-backed securities collateralized by such mortgages2 and 7#b7 transfer the standardized mortgage-backed securities to the mortgage originator or aggregator from which the ,platform received the pool of eligible mortgages that are collateralizing the securities or the designee of such originator or aggregator4 7d7 ,standardized criteria for securities ,in issuing securities under this section1 the ,platform shall establish standardized criteria for such securities1 including-- 7#a7 uniform loan delivery1 servicing1 and pooling requirements2 7#b7 remittance requirements2 7#c7 underwriting guidelines and refinance programs2 7#d7 the credit quality of the guarantee provided to each security2 7#e7 servicing standards and loan repurchase policies2 7#f7 disclosure policies2 7#g7 security terms and features2 and 7#h7 standards for the appropriate minimum level of diversification for the mortgage loans that collateralize such securities1 in order to reduce the credit risk such securities could pose to the ,fund4 7e7 ,securitization fee ,the ,platform shall charge a fee for securitization services provided under this section4 ,such fee shall be set by the ,director and shall be in an amount sufficient to offset the costs to the ,platform of carrying out this section4 7f7 ,loan limits2 ,housing ,price ,index 7#a7 ,establishment ,ginnie ,mae shall establish limitations governing the maximum original principal obligation of eligible mortgage loans that may collateralize a security issued under this ,act4 7#b7 ,calculation of amount ,the limitation set forth under paragraph 7#a7 shall be calculated with respect to the total original principal obligation of the eligible mortgage loan and not merely with respect to the amount insured by ,ginnie ,mae4 7#c7 ,maximum limits 7,a7 ,in general ,except as provided in subparagraph 7,b71 the maximum limitation amount under this paragraph shall not exceed #dag1jjj for a mortgage loan secured by a #a-;family residence1 for a mortgage loan secured by a #b-;family residence the limit shall equal #abh percent of the limit for a mortgage loan secured by a #a-;family residence1 for a mortgage loan secured by a #c-;family residence the limit shall equal #aee percent of the limit for a mortgage loan secured by a #a-;family residence1 and for a mortgage loan secured by a #d-;family residence the limit shall equal #aib percent of the limit for a mortgage loan secured by a #a-;family residence1 except that such maximum limitations shall be adjusted effective ,january #a of each year beginning after the effective date of this ,act1 subject to the limitations in this subsection4 ,each adjustment shall be made by adding to each such amount 7as it may have been previously adjusted7 a percentage thereof equal to the percentage increase1 during the most recent #ab-month or #d-quarter period ending before the time of determining such annual adjustment1 in the housing price index maintained by ,ginnie ,mae pursuant to paragraph 7#d74 ,if the change in such house price index during the most recent #ab-month or #d-quarter period ending before the time of determining such annual adjustment is a decrease1 then no adjustment shall be made for the next year1 and the next upward adjustment shall take into account prior declines in the house price index1 so that any adjustment shall reflect the net change in the house price index since the last adjustment4 ,declines in the house price index shall be accumulated and then reduce increases until subsequent increases exceed prior declines4 7,b7 ,high-cost area limits ,the limitations set forth in subparagraph 7,a7 may be increased by not more than #ej percent with respect to properties located in ,alaska1 ,guam1 ,hawaii1 and the ,virgin ,islands4 ,such foregoing limitations shall also be increased1 with respect to properties of a particular size located in any area for which #aae percent of the median house price for such size residence exceeds the limitation for such size residence set forth under subparagraph 7,a71 to the lesser of #aej percent of such limitation for such size residence or the amount that is equal to #aae percent of the median house price in such area for such size residence4 7#d7 ,housing ,price ,index 7,a7 ,national ,index ,ginnie ,mae shall establish and maintain a method of assessing a national average single-family house price for use in calculating the loan limits for single-family mortgage loans under paragraph 7#c71 and other averages as ,ginnie ,mae considers appropriate1 including-- 7i7 averages based on different geographic regions2 and 7ii7 an average for houses whose mortgage collateralized single-family covered securities4 7,b7 ,considerations ,in establishing the method described under subparagraph 7,a71 ,ginnie ,mae may take into consideration such data1 including existing house price indexes1 and other measures as ,ginnie ,mae considers appropriate4 7g7 ,authority for loan-,level enhancement ,with respect to an eligible mortgage loan that is or will be contained in a pool of mortgages delivered to the ,platform1 the mortgage originator of such mortgage loan may enter into agreements with market participants to provide loan-level enhancement of such mortgage loan4 7h7 ,certification ,ginnie ,mae shall1 upon a determination that the ,platform is able to efficiently carry out the issuance of standardized mortgage-backed securities and that there exists a sufficient number of market participants to serve as insurers and reinsurers under section #bjb1 certify to the ,congress that such determination has been made4 7i7 ,duty ,to serve all markets 7#a7 ,in general ,in carrying out its responsibilities under this title1 ,ginnie ,mae shall facilitate the broad availability of mortgage credit and secondary mortgage market financing through fluctuations in the business cycle for single-family and multifamily lending across all-- 7,a7 regions2 7,b7 localities2 7,c7 institutions2 7,d7 property types1 including housing serving renters2 and 7,e7 borrowers4 7#b7 ,report to ,congress ,ginnie ,mae shall issue a semiannual report to the ,congress on-- 7,a7 how ,ginnie ,mae is carrying out the duties required under paragraph 7#a72 and 7,b7 the extent to which the provisions of this title and the programs carried out pursuant to this title are benefitting underserved communities4 7j7 ,exemption from ,,sec laws and regulations ,standardized mortgage-backed securities issued by the ,platform shall be exempt from the ,federal securities laws 7as defined under section #c7;a7 of the ,securities ,exchange ,act of #aicd7 and all regulations issued pursuant to such laws4 #bjb4 ,insurance 7a7 ,in general ,ginnie ,mae shall insure #ajj percent of each security issued by the ,platform1 as provided in this section4 7b7 ,private reinsurance ,ginnie ,mae shall establish one of the two programs described under paragraphs 7#a7 and 7#b74 ,in selecting which program to establish1 ,ginnie ,mae shall determine which program is the most efficient way to operate the insurance requirements under this ,act by incorporating private sector pricing4 7#a7 ,reinsurance ,bid ,program ,a ,reinsurance ,bid ,program1 which shall include the following3 7,a7 ,forward contract for first #e percent loss ,prior to any particular quarter 7or such other time period determined by ,ginnie ,mae71 ,ginnie ,mae shall enter into contracts with market participants to reinsure the first #e percent of loss on all securities issued by the ,platform in such quarter 7or other time period74 7,b7 ,forward contract for last #ie percent loss ,prior to any particular quarter 7or such other time period determined by ,ginnie ,mae71 ,ginnie ,mae shall sign-- 7i7 contracts with market participants to reinsure the last #ie percent of loss on all securities issued by the ,platform in such quarter 7or other time period72 and 7ii7 a retrocession contract with each such market participant under which ,ginnie ,mae will agree to offer retrocessional reinsurance to reinsure up to #ij percent of the #ie percent described under clause 7i7 on a pari passu basis4 7#b7 ,guarantor ,program ,a ,guarantor ,program1 which shall include the following3 7,a7 ,first loss requirement ,the mortgage originator or aggregator that wishes to deliver a pool of eligible mortgage loans to the ,platform for securitization shall1 prior to delivering such pool1 contract directly with a market participant to insure the first #e percent of loss on all securities issued by the ,platform that are securitized by such pool of eligible mortgage loans4 7,b7 ,coverage for last #ie percent loss ,for each security described under subparagraph 7,a7 ,ginnie ,mae shall sign-- 7i7 contracts with market participants to reinsure the last #ie percent of loss on the security2 and 7ii7 a retrocession contract with each such market participant under which ,ginnie ,mae will agree to offer retrocessional reinsurance to reinsure up to #ij percent of the #ie percent described under clause 7i7 on a pari passu basis4 7,c7 ,ability to select market participants 7i7 ,in general ,if ,ginnie ,mae determines that it would be an efficient way to operate the insurance requirements under this ,act and would encourage the incorporation of private sector pricing1 ,ginnie ,mae may allow mortgage originators and aggregators described under subparagraph 7,a7 to select the market participant described under subparagraph 7,b74 7ii7 ,handling of pre-selected market participants ,if a market participant is selected by a mortgage originator or aggregator1 as described under clause 7i7-- 7,i7 such market participants shall be required to meet the same standards as a market participant selected by ,ginnie ,mae2 and 7,,ii7 for purposes of determining the insurance fee described under subsection 7d71 ,ginnie ,mae shall contract with a private sector insurer to estimate the risk that the market participant may default4 7c7 ,additional program requirements 7#a7 ,competitive bidding process ,ginnie ,mae shall use a competitive bidding process to determine which market participants should be granted contracts under subsection 7b77#a7 and1 except as provided under subsection 7b77#b77;,c71 under subsection 7b77#b77;,b74 7#b7 ,use of insurance broker ,with respect to any market participant that ,ginnie ,mae selects under a risk sharing program1 ,ginnie ,mae shall select an insurance broker1 through a competitive bidding process1 that will solicit bids1 on behalf of ,ginnie ,mae1 for the reinsurance contracts under such program4 7#c7 ,ceding commission ,as part of a retrocession contract under subsection 7b77#a77;,b77ii7 or subsection 7b77#b77;,b77ii71 the market participants shall be paid a competitively determined ceding commission for the underwriting and administrative costs of providing such reinsurance4 7#d7 ,phase-in ,ginnie ,mae may1 if it determines it appropriate-- 7,a7 phase-in the #e percent requirements under subsections 7b77#a77;,a7 and 7b77#b77;,a71 by originally requiring a lower percentage2 and 7,b7 phase-in the #ij percent requirement under subsections 7b77#a77;,b77ii7 and 7b77#b77;,b77ii71 by originally requiring a higher percentage4 7d7 ,insurance fee and terms 7#a7 ,pre-pricing of insurance fee ,ginnie ,mae shall set the insurance fee applicable to securities issued by the ,platform in advance on a quarter-by-quarter basis1 through forward contracts established with market participants based on the volume and type of securities ,ginnie ,mae anticipates the ,platform issuing during such quarter4 7#b7 ,components of insurance fee 7,a7 ,in general ,the insurance fee shall reflect the anticipated cost to ,ginnie ,mae of providing insurance1 including the cost of obtaining reinsurance under subsection 7b74 7,b7 ,adjustment for performance ,ginnie ,mae may adjust the fee computed under subparagraph 7,a7 to reflect the historic quality of deliveries and rating of mortgage loans made by the mortgage originators or aggregators that originated or aggregated the mortgage loans included in the pool of eligible mortgage loans backing the security being insured1 but in making such adjustments1 ,ginnie ,mae shall ensure that the weighted average of the entire book of business matches the ultimate price determination4 7#c7 ,rate adjustment period ,the rate charged by a private market participant that contracts with ,ginnie ,mae pursuant to subsection 7b7-- 7,a7 may not change during the first #ajj-;day period for which such reinsurance is effective2 and 7,b7 shall be adjusted based on market conditions1 on a period to be determined by the ,director4 7e7 ,standards for market participants 7#a7 ,in general ,ginnie ,mae shall issue such general standards for market participants described under subsection 7b7 as ,ginnie ,mae determines appropriate4 7#b7 ,credit rating requirements 7,a7 ,in general ,notwithstanding any other provision of law1 ,ginnie ,mae shall require a market participant described under subsection 7b7 to maintain at least an ,a credit rating and shall consult with credit rating agencies and ,state insurance commissions1 where applicable1 to verify such rating4 7,b7 ,flexibility for new companies ,ginnie ,mae may waive or modify the requirement under subparagraph 7,a7 with respect to a new market participant4 7#c7 ,capital standards for market participants 7,a7 ,in general ,for market participants described under subsection 7b71 ,ginnie ,mae shall establish1 by regulation1 capital standards and related solvency standards necessary to implement the provisions of this ,act4 7,b7 ,definitions 7i7 ,in general ,the regulations required under this paragraph shall define all such terms as are necessary to carry out the purposes of this paragraph4 7ii7 ,considerations in defining instruments and contracts that qualify as capital ,in defining instruments and contracts that qualify as capital pursuant to subparagraph 7,a71 ,ginnie ,mae-- 7,i7 shall include such instruments and contracts that will absorb losses before the ,fund2 and 7,,ii7 may assign significance to those instruments and contracts based on the nature and risks of such instruments and contracts4 7iii7 ,considerations in defining capital ratios ,solely for the purposes of calculating a capital ratio appropriate to the business model of a market participant pursuant to subparagraph 7,a71 ,ginnie ,mae shall consider for the denominator-- 7,i7 total assets2 7,,ii7 total liabilities2 7,,iii7 risk in force2 or 7,,iv7 unpaid principal balance4 7,c7 ,designed to ensure safety and soundness ,the capital and related solvency standards established under this paragraph shall be designed to-- 7i7 ensure the safety and soundness of a market participant2 7ii7 minimize the risk of loss to the ,fund2 7iii7 in consultation and coordination with the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,office of the ,comptroller of the ,currency1 reduce the potential for regulatory arbitrage between capital standards for market participants and capital standards promulgated by ,federal regulatory agencies for insured depository institutions and their affiliates2 and 7iv7 be specifically tailored to accommodate a diverse range of business models that may be employed by market participants4 7,d7 ,supplemental capital requirements 7i7 ,in general ,in order to prevent or mitigate risks to the secondary mortgage market of the ,united ,states that could arise from the material financial distress or failure1 or ongoing activities1 of large market participants that insure securities under this ,act1 ,ginnie ,mae1 by regulation-- 7,i7 shall establish supplemental capital requirements for such large market participants2 and 7,,ii7 may establish such other standards that ,ginnie ,mae determines necessary or appropriate4 7ii7 ,large market participant defined ,for purposes of this subparagraph1 ,ginnie ,mae shall define the term large market participant4 7f7 ,conflict of interests ,ginnie ,mae shall issue regulations to prevent conflicts of interest by market participants contracting with ,ginnie ,mae under this section4 7g7 ,insurance ,fund 7#a7 ,establishment ,there is established an insurance fund 7the ,fund71 which ,ginnie ,mae shall-- 7,a7 maintain and administer2 and 7,b7 use to cover losses incurred under this section with respect to mortgage-backed securities4 7#b7 ,fund goal 7,a7 ,in general ,ginnie ,mae shall endeavor to ensure that the ,fund attains a reserve balance-- 7i7 of #a4be percent of the sum of the outstanding principal balance of the securities for which insurance is being provided under this ,act within #e years of the date on which the ,director determines that the ,platform is fully functioning1 and to strive to maintain such ratio thereafter1 subject to clause 7ii72 and 7ii7 of #b4ej percent of the sum of the outstanding principal balance of the securities for which insurance is being provided under this ,act within #aj years of the date on which the ,director determines that the ,platform is fully functioning1 and to strive to maintain such ratio at all times thereafter4 7,b7 ,adjustment of fees ,notwithstanding subsection 7d71 ,ginnie ,mae may raise or lower the fee charged for insurance under this section in order to maintain the reserve balance described under subparagraph 7,a74 7#c7 ,deposits ,the ,fund shall be credited with any fees received by ,ginnie ,mae in exchange for insurance made available under this section4 7#d7 ,prohibited investments ,amounts in the ,fund may not be invested in any-- 7,a7 standardized mortgage-backed security insured under this ,act2 or 7,b7 mortgage-backed security issued by the enterprises4 7#e7 ,full faith and credit ,the full faith and credit of the ,united ,states is pledged to the payment of all amounts which may be required to be paid under any insurance provided under this section4 #bjc4 ,authority to protect taxpayers in unusual and exigent market conditions 7a7 ,in general ,if ,ginnie ,mae1 upon the written agreement of the ,chairman of the ,board of ,governors of the ,federal ,reserve ,system and the ,secretary of the ,treasury1 and in consultation with the ,secretary of ,housing and ,urban ,development1 determines that unusual and exigent circumstances have created or threaten to create an anomalous lack of mortgage credit availability within the single-family housing market1 multifamily housing market1 or entire ,united ,states housing market that could materially and severely disrupt the functioning of the housing finance system of the ,united ,states1 ,ginnie ,mae may1 for a period of #f months-- 7#a7 modify or waive the reinsurance requirements under section #bjb7;b72 and 7#b7 establish provisional standards for approved entities4 7b7 ,considerations ,in exercising the authority granted under subsection 7a71 ,ginnie ,mae shall consider the severity of the conditions present in the housing markets and the risks presented to the ,fund in exercising such authority4 7c7 ,terms and conditions ,insurance provided under subsection 7a7 shall be subject to such additional or different limitations1 restrictions1 and regulations as ,ginnie ,mae may prescribe4 7d7 ,bailout strictly prohibited ,in exercising the authority granted under subsection 7a71 ,ginnie ,mae may not-- 7#a7 provide aid to an approved entity or an affiliate of the approved entity1 if such approved entity is in bankruptcy or any other ,federal or ,state insolvency proceeding2 or 7#b7 provide aid for the purpose of assisting a single and specific company avoid bankruptcy or any other ,federal or ,state insolvency proceeding4 7e7 ,notice ,not later than #g days after authorizing insurance or establishing provisional standards under subsection 7a71 ,ginnie ,mae shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report that includes-- 7#a7 the justification for the exercise of authority to provide such insurance or establish such provisional standards2 7#b7 evidence that unusual and exigent circumstances have created or threatened to create an anomalous lack of mortgage credit availability within the single-family housing market1 multifamily housing market1 or entire ,united ,states housing market that could materially and severely disrupt the functioning of the housing finance system of the ,united ,states2 and 7#c7 evidence that failure to exercise such authority would have undermined the safety and soundness of the housing finance system4 7f7 ,additional exercise of authority 7#a7 ,in general ,subject to the limitation under subsection 7g71 the authority granted to ,ginnie ,mae under subsection 7a7 may be exercised for #b additional #i-month periods within any given #c-year period1 provided that ,ginnie ,mae1 upon the written agreement of the ,chairman of the ,board of ,governors of the ,federal ,reserve ,system and the ,secretary of the ,treasury1 and in consultation with the ,secretary of ,housing and ,urban ,development-- 7,a7 determines-- 7i7 for a second exercise of authority under subsection 7a71 that a second exercise of authority under subsection 7a7 is necessary2 or 7ii7 for a third exercise of authority under subsection 7a71 by an affirmative vote of the ,director of ,ginnie ,mae and an affirmative vote of #b_/c or more of the ,board of ,governors of the ,federal ,reserve ,system then serving1 that a third exercise of authority under this section is necessary2 and 7,b7 provides notice to ,congress1 as provided under subsection 7e74 7#b7 ,order of exercise of authority ,any additional exercise of authority under this subsection may occur consecutively or non-consecutively4 7g7 ,limitation ,the authority granted to ,ginnie ,mae under this section may not be exercised more than #c times in any given #c-year period1 which #c-year period shall commence upon the initial exercise of authority under subsection 7a74 7h7 ,normalization and reduction of risk ,following any exercise of authority under this section1 ,ginnie ,mae shall-- 7#a7 establish a timeline for approved entities to meet the approval standards set forth in this ,act2 and 7#b7 in a manner and pursuant to a timeline that will minimize losses to the ,fund1 establish a program to either-- 7,a7 sell1 in whole or in part1 the first loss position on securities described in this section to private market holders2 or 7,b7 transfer for value to approved entities1 or work with approved entities to sell1 in whole or in part1 the first lost position on securities described in this section4 7i7 ,authority ,to respond to sustained national home price decline 7#a7 ,authority ,in the event of a significant decline of national home prices1 in at least #b consecutive calendar quarters1 ,ginnie ,mae may for a period of #f months permit the transfer of guarantees of eligible mortgage loans that secure securities issued under this ,act if such eligible mortgage loans are refinanced1 regardless of the value of the underlying collateral securing such eligible mortgage loans4 7#b7 ,additional exercise of authority ,the authority granted to ,ginnie ,mae under paragraph 7#a7 may be exercised for additional #f-month periods4 7#c7 ,limitation ,ginnie ,mae shall not provide insurance under this ,act to any security issued under this ,act that includes mortgage loans that do not meet the definition of an eligible mortgage loan1 except for mortgage loans refinanced from eligible mortgage loans in securities issued under this ,act4 7#d7 ,rule of construction ,no provision in this section shall be construed as permitting ,ginnie ,mae to lower any other requirement related to the requirements set forth under the definition of an eligible mortgage loan4 #bjd4 ,servicing rights2 representations and warranties 7a7 ,servicing rights ,the servicing rights for mortgage-backed securities issued by the ,issuing ,platform shall be controlled by-- 7#a7 the reinsurance company reinsuring the first #e percent loss position on such securities2 or 7#b7 in the case of securities that do not have a reinsurance company reinsuring the first #e percent loss position or with respect to which the such reinsurance company is insolvent1 ,ginnie ,mae4 7b7 ,advancing of payments ,the party controlling the servicing rights described under subsection 7a7 shall also control the advancing of payments4 7c7 ,representations and warranties 7#a7 ,collateral manager ,with respect to each pool securitized by the ,issuing ,platform1 there shall be a collateral manager who shall-- 7,a7 oversee representations and warranties2 7,b7 act for the benefit of investors2 and 7,c7 in the case of a mortgage loan that is in breach of the representations and warranties1 facilitate the repurchase or replacement of such mortgage loan with a mortgage loan that is in compliance with representations and warranties4 7#b7 ,fiduciary duties with respect to private label securities 7,a7 ,in general ,all contracts for private label securities issued after the date of the enactment of this ,act shall include the following provisions3 7i7 ,the qualification1 responsibilities1 and duties of trustees1 including requirements set forth in the indenture or pooling and servicing agreement1 or any applicable provisions of the ,trust ,indenture ,act of #aici 7#ae ,u4,s4,c4 #gg;aaa et seq474 7ii7 ,trustees of private label securities shall have a fiduciary duty to protect the financial interests of investors of such securities4 7,b7 ,trustee's fiduciary duty defined ,for purposes of this paragraph1 a trustee's fiduciary duty means that a trustee shall at all times oversee1 monitor1 and manage the trust that owns the mortgage loans securing the private label securities in the financial interests of the trust and its investors1 with the same degree of care and skill that a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs4 ln determining financial interests1 the trustee's fiduciary duty shall consider all investors in a securitization1 rather than the interests of any particular class of investors4 ,a trustee that is deemed to be acting in accordance with its fiduciary duty to the trust shall not be liable to any investor1 and shall not be subject to any injunction1 stay1 or other equitable relief sought by such investor1 based solely upon such actions4 7,c7 ,inclusion of fiduciary duty ,the governing documents of any private label securities issued after the date of the enactment of this ,act shall automatically be deemed to include a trustee's fiduciary duty4 ,the trustee's fiduciary duty may not be abrogated or altered by the parties to such documents and may not be amended by parties to contracts for private label securities4 7,d7 ,rule of construction ,nothing in this paragraph shall be construed to relieve any party of its duties to participants and beneficiaries of any employee benefit plan under the ,employee ,retirement ,income ,security ,act 7#bi ,u4,s4,c4 #aaja et seq474 7,e7 ,conflicts with the ,trust ,indenture ,act of #aici ,to the extent that the provisions of this paragraph conflict with any provision of the ,trust ,indenture ,act of #aici1 the provisions of the ,trust ,indenture ,act of #aici shall apply1 but only to the extent of the conflict4 7,f7 ,study ,not later than #c years after the date of enactment of this ,act1 ,ginnie ,mae shall-- 7i7 conduct a study to evaluate-- 7,i7 the structure of compensation for trustees of private label securities2 7,,ii7 any changes to such compensation attributable io the imposition of the fiduciary duty required under this paragraph2 and 7,,iii7 any effects of the imposition of such fiduciary duty on liquidity in the market for private label securities2 7ii7 not later than #a year after the commencement of the study required under clause 7i71 submit a report to ,congress describing any findings and conclusions of such study2 7iii7 conduct a study to evaluate any effects of the imposition of the fiduciary duty required under this paragraph upon borrowers1 including if the imposition of' such fiduciary duty results in additional costs and expenses to borrowers2 and 7iv7 not later than #a year after the commencement of the study required under clause 7iii71 submit a report to ,congress describing any findings and conclusions of such study4 7,g7 ,private label security defined ,for purposes of this paragraph1 the term private label security means a mortgage-backed security that is not issued by the ,platform4 7d7 ,mandatory arbitration ,disputes between parties to a security issued by the ,issuing ,platform shall be subject to mandatory arbitration4 #bje4 ,federal ,home ,loan ,banks 7a7 ,membership of lenders ,section #d of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adbd7 is amended by adding at the end the following3 7d7 ,lenders 7#a7 ,in general ,any lender that satisfies the requirements of subparagraphs 7,a7 and 7,c7 of subsection 7a77#a7 shall be eligible to become a member of a ,federal ,home ,loan ,bank4 7#b7 ,stock requirement ,ginnie ,mae shall issue regulations specifying that a separate class of stock shall be issued by ,federal ,home ,loan ,banks to lenders who become a member of a ,federal ,home ,loan ,bank pursuant to this subsection1 and ,ginnie ,mae shall determine the applicable restrictions and requirements for such stock4 4 7b7 ,pooling services for eligible mortgages ,section #aa of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adca7 is amended by adding at the end the following3 7m7 ,pooling services for eligible mortgages 7#a7 ,pooling services ,each ,federal ,home ,loan ,bank shall provide pooling services to both members and non-members who wish to pool eligible mortgages for purposes of securitizing such mortgages through the ,issuing ,platform established by title ,,ii of the ,partnership to ,strengthen ,homeownership ,act of #bjad4 7#b7 ,eligible mortgages defined ,for purposes of this subsection1 the term eligible mortgage has the meaning given that term under section #b of the ,partnership to ,strengthen ,homeownership ,act of #bjad4 4 ,,iii ,wind down of ,fannie ,mae and ,freddie ,mac #cja4 ,limitation on business ,the ,director of the ,government ,national ,mortgage ,association shall provide that1 after the certification date-- 7#a7 the enterprises may not issue1 guarantee1 or purchase any security backed by mortgages on #a- to #d-;family residences except as specifically authorized by this ,act2 7#b7 an enterprise may act as a participating aggregator of eligible mortgages for securitization pursuant to section #bja if such eligible mortgages are originated by originators whose volume of such business is insufficient to allow for such originators to aggregate and securitize such mortgages1 until the earlier of-- 7,a7 such time as the ,director determines that any other qualified entity or entities provide sufficient market access to such originators under competitive rates and terms and requires the enterprises to cease such business2 or 7,b7 the commencement of the receivership under section #cjd7;a72 and 7#c7 an enterprise may act as a reinsurer for a mortgage-backed security in accordance with the requirements under section #bjb7;b7 until the commencement of the receivership under section #cjd7;a74 #cjb4 ,risk-sharing pilot programs ,not later than the expiration of the #ab-month period beginning on the date of the enactment of this ,act1 each enterprise shall establish a risk-sharing pilot program to develop private sector first-loss positions on mortgage-backed securities4 ,such first-loss positions shall be a percentage of the principal or face value of a mortgage-backed security1 as determined from time-to-time by the ,director1 taking into consideration market conditions and the capability of the private sector to assume credit risk4 #cjc4 ,continued conservatorship 7a7 ,timing ,the conservatorships of the enterprises in effect upon the enactment of this ,act shall continue in effect until the commencement of the receivership of the enterprises pursuant to subsection 7d71 subject to the transfer under section #ajb7;a77#a77;,b74 7b7 ,aligning purposes of conservatorship ,notwithstanding section #acfg7;b77#b77;,d7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7;b77#b77;,d771 after the date of the enactment of this ,act1 the ,director shall1 as conservator of each enterprise1 take such actions as are necessary to manage the affairs1 assets1 and obligations of each enterprise1 and to operate each enterprise1 in compliance with this section4 7c7 ,return of enterprises to private market ,during the term of the conservatorships of the enterprises1 the ,director shall-- 7#a7 carry out the conservatorship in a manner that furthers achievement of the goals and terms of the mandatory receiverships under subsection 7d77#b72 7#b7 identify any assets of the enterprises necessary for ,ginnie ,mae to carry out its functions and responsibilities under sections #bja1 #bjb1 and #dja of this ,act2 and 7#c7 prepare for the transfer of the multifamily housing finance business of the enterprises in accordance with section #dja of this ,act4 #cjd4 ,mandatory receivership 7a7 ,commencement ,the ,director shall1 with respect to each enterprise1 immediately appoint the ,ginnie ,mae as receiver under section #acfg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7 upon the later of the following3 7#a7 #e-year period ,the expiration of the #fj-month period beginning on the date of the enactment of this ,act1 as the duration of such period may be adjusted pursuant to subsection 7c74 7#b7 ,platform certified as functional2 competitive access for small lenders2 ,,fhlb capacity ,the certification date has occurred and the ,director has determined that-- 7,a7 a competitive private housing finance market has been established2 7,b7 competitive and equitable access to the ,platform for smaller mortgage lenders is available2 7,c7 the pooling services offered by ,federal ,home ,loan ,banks pursuant to section #aa7m7 of the ,federal ,home ,loan ,bank ,act are competitive with services made available by the enterprises before the certification date2 7,d7 the ,federal ,home ,loan ,banks are capable of meeting the cash window needs of credit unions1 community and mid-sized depository institutions1 and non-depository mortgage originators with competitive rates and terms2 and 7,e7 the ,federal ,home ,loan ,banks have created a to be announced market that is viable in all economic cycles4 7b7 ,goals and terms ,ginnie ,mae shall carry out the receivership referred to in subsection 7a7 for the enterprise under the authority of such section #acfg1 subject to the following requirements3 7#a7 ,goals ,in carrying out the receivership of each enterprise1 ,ginnie ,mae shall strive to achieve both of the following goals3 7,a7 ,return to taxpayers ,obtaining an adequate return of taxpayer investment in the enterprise1 taking into consideration the total cost to the taxpayers1 the value provided to the enterprise1 and the risk and exposure to the ,federal ,government involved1 together with interest on such investment at a rate determined by the ,director1 in consultation with the ,board of ,governors of the ,federal ,reserve ,system and the ,secretary of the ,treasury4 7,b7 ,competitive private housing finance market ,removing barriers to private sector competition in the housing finance market by providing for the transfer of the assets of the enterprise into the private sector to compete in a functioning housing finance market4 7#b7 ,full privatization ,any entities emerging from such receivership shall be fully private and any obligations and securities of such entities shall not constitute a debt or obligation of the ,united ,states nor or any agency or instrumentality thereof4 7#c7 ,multifamily housing business ,the receivership shall provide1 notwithstanding any other provision of this ,act1 for the transfer of the multifamily housing mortgage guarantee business of the enterprises in accordance with section #dja of this ,act4 7#d7 ,availability of assets ,the receivership shall provide for-- 7,a7 the identification of any assets of the enterprise that are not necessary for the operation of the limited-life entities established pursuant to paragraph 7#f72 and 7,b7 making such assets available at auction for acquisition by any private entities1 which shall include the private entities established pursuant to paragraph 7#f77;,c74 7#e7 ,restructuring of ,,spspa ,the receivership shall provide for the restructuring of the ,senior ,preferred ,stock ,purchase ,agreements entered into between the ,department of the ,treasury and the enterprise on ,september #bf1 #bjjh1 as amended and restated thereafter1 to-- 7,a7 permit the redemption of senior preferred shares of the ,department of the ,treasury2 7,b7 provide for the cancellation of the warrants for the purchase of common stock of the enterprises issued to the ,department of the ,treasury2 and 7,c7 provide for the appropriate level of compensation to the ,federal ,government for the financial support and commitment provided to the enterprise4 7#f7 ,wind-down2 limited-life enterprises2 restructuring ,under the receivership-- 7,a7 the receiver shall organize a limited-life regulated entity for the enterprise in accordance with section #acfg7;i7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7;i771 except that-- 7i7 any assets and liabilities of the enterprise that the receiver determines are necessary to allow the limited-life regulated entity to operate independent from the resolution of the enterprise shall be transferred to the limited-life regulated entity2 and 7ii7 in winding up the affairs of the limited-life regulated entity1 the remaining assets of the limited-life regulated entity shall be made available to the successor entities established pursuant to subparagraph 7,c7 of this paragraph and to other private guarantors engaged in providing insurance for eligible mortgage-backed securities in accordance with section #bjb2 7,b7 the charter of the enterprise shall be repealed pursuant to section #acfg7k7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7k771 as amended by section #cje2 and 7,c7 the receiver shall provide for reorganization and chartering of the successor entity to the limited life regulated entity for the enterprise as an entity established to operate as an insurer under section #bjb7;b77#b77;,a7 of this ,act or a participating aggregator of eligible mortgages for securitization pursuant to section #bja if such eligible mortgages are originated by originators whose volume of such business is insufficient to allow for such originators to aggregate and securitize such mortgages4 7c7 ,adjustment of timing ,ginnie ,mae may adjust the duration of the period referred to in subsection 7a77#a7 by establishing requirements to be met by market participants before such period may be considered to be concluded4 ,such requirements may include requirements regarding-- 7#a7 ensuring that there is an adequate level of private capital available for efficient financing of single-family and multifamily housing mortgages through-- 7,a7 the market for initial public offerings2 and 7,b7 retained earnings of market participants2 and 7#b7 ensuring that any anticompetitive liquidity advantages in mortgage-backed securities are adequately protected against4 #cje4 ,repeal of enterprise charters ,section #acfg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #dfag7 is amended by striking subsection 7k7 and inserting the following new subsection3 7k7 ,repeal of enterprise charters 7#a7 ,fannie ,mae ,effective upon the certification date 7as such term is defined in section #b of the ,partnership to ,strengthen ,homeownership ,act of #bjad71 the charter of the ,federal ,national ,mortgage ,association is repealed and the ,federal ,national ,mortgage ,association shall have no authority to conduct new business under such charter1 except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of-- 7,a7 outstanding debt obligations of the ,federal ,national ,mortgage ,association1 including any-- 7i7 bonds1 debentures1 notes1 or other similar instruments2 7ii7 capital lease obligations2 or 7iii7 obligations in respect of letters of credit1 bankers' acceptances1 or other similar instruments2 or 7,b7 mortgage-backed securities guaranteed by the ,federal ,national ,mortgage ,association that are not eligible mortgage-backed securities insured by ,ginnie ,mae pursuant to section #bjb of the ,partnership to ,strengthen ,homeownership ,act of #bjad4 7#b7 ,freddie ,mac ,effective upon the certification date1 the charter of the ,federal ,home ,loan ,mortgage ,corporation is repealed and the ,federal ,home ,loan ,mortgage ,corporation shall have no authority to conduct new business under such charter1 except that the provisions of such charter in effect immediately before such repeal shall continue to apply with respect to the rights and obligations of any holders of-- 7,a7 outstanding debt obligations of the ,federal ,home ,loan ,mortgage ,corporation1 including any-- 7i7 bonds1 debentures1 notes1 or other similar instruments2 7ii7 capital lease obligations2 or 7iii7 obligations in respect of letters of credit1 bankers' acceptances1 or other similar instruments2 or 7,b7 mortgage-backed securities guaranteed by the ,federal ,home ,loan ,mortgage ,corporation that are not eligible mortgage-backed securities insured by ,ginnie ,mae pursuant to section #bjb of the ,partnership to ,strengthen ,homeownership ,act of #bjad4 7#c7 ,existing guarantee obligations 7,a7 ,explicit guarantee ,the full faith and credit of the ,united ,states is pledged to the payment of all amounts which may be required to be paid under any obligation described in paragraph 7#a7 or 7#b74 7,b7 ,continued dividend payments ,notwithstanding any other provision of law1 provision #b7;a7 7relating to ,dividend ,payment ,dates and ,dividend ,periods7 and provision #b7;c7 7relating to ,dividend ,rates and ,dividend ,amount7 of the ,senior ,preferred ,stock ,purchase ,agreement1 or any provision of any certificate in connection with such ,agreement creating or designating the terms1 powers1 preferences1 privileges1 limitations1 or any other conditions of the ,variable ,liquidation ,preference ,senior ,preferred ,stock of an enterprise issued pursuant to such ,agreement-- 7i7 shall not be amended1 restated1 or otherwise changed to reduce the rate or amount of dividends in effect pursuant to such ,agreement as of the ,third ,amendment to such ,agreement dated ,august #ag1 #bjab1 except that any amendment to such ,agreement to facilitate the sale of assets of the enterprises shall be permitted2 and 7ii7 shall remain in effect until the guarantee obligations described under paragraphs 7#a77;,b7 and 7#b77;,b7 of this subsection are fully extinguished4 7,c7 ,applicability ,all guarantee fee amounts derived from the single-family mortgage guarantee business of the enterprises in existence as of the certification date shall be subject to the ,senior ,preferred ,stock ,purchase ,agreement4 7,d7 ,senior ,preferred ,stock ,purchase ,agreement ,for purposes of this paragraph1 the term ,senior ,preferred ,stock ,purchase ,agreement means-- 7i7 the ,amended and ,restated ,senior ,preferred ,stock ,purchase ,agreement1 dated ,september #bf1 #bjjh1 as such ,agreement has been amended on ,may #f1 #bjji1 ,december #bd1 #bjji1 and ,august #ag1 #bjab1 respectively1 and as such ,agreement may be further amended and restated1 entered into between the ,department of the ,treasury and each enterprise1 as applicable2 and 7ii7 any provision of any certificate in connection with such ,agreement creating or designating the terms1 powers1 preferences1 privileges1 limitations1 or any other conditions of the ,variable ,liquidation ,preference ,senior ,preferred ,stock of an enterprise issued or sold pursuant to such ,agreement4 7#d7 ,swap option for new securities ,notwithstanding any other provision of this subsection1 ,ginnie ,mae shall provide that during the #cj-year period beginning upon the certification date1 any securities described in paragraph 7#a77;,b7 or 7#b77;,b7 may be exchanged1 at the request of the holder of such security1 for securities insured under section #bjb of the ,partnership to ,strengthen ,homeownership ,act of #bjad1 and ,ginnie ,mae shall ensure fungibility between such securities exchanged4 ,ginnie ,mae may establish such terms and conditions for such exchanges as ,ginnie ,mae considers appropriate1 except that ,ginnie ,mae shall provide that in such exchanges such securities described in paragraph 7#a77;,b7 or 7#b77;,b7 shall receive a risk weight of zero4 4 #cjf4 ,ginnie ,mae authority regarding timing 7a7 ,authority ,the ,director may extend any deadline referred to in section #cja1 #cjc7;a71 #cjd7;a71 or the provisions amended by section #cje1 as provided in such subsection 7b7 of this section1 but only if the ,director-- 7#a7 makes a determination1 after consultation with the ,board of ,governors of the ,federal ,reserve ,system1 that such deadline is posing significant risk to the housing market2 and 7#b7 causes notice of such determination to be published in the ,federal ,register4 7b7 ,extensions 7#a7 ,first extension ,the first extension of any deadline pursuant to subsection 7a7 shall be for a period of an additional #b years4 7#b7 ,second extension ,if1 after the expiration of a first extension of a deadline of #b years1 the ,director makes a determination as provided in subsection 7a77#a71 the ,director may extend the deadline an additional #b years4 7#c7 ,additional extensions ,if1 after the expiration of the second extension of a deadline of #b years1 the ,director makes a determination as provided in subsection 7a77#a71 the ,director may1 upon the written agreement of the ,chairman of the ,board of ,governors of the ,federal ,reserve ,system and the ,secretary of the ,treasury1 and in consultation with the ,secretary of the ,housing and ,urban ,development1 extend the deadline an additional year1 and annually thereafter utilizing the same process described in this paragraph until such time as the ,director makes a determination that such deadline does not pose a significant risk to the housing market4 7c7 ,reports ,if the ,director extends any deadline period pursuant to the authority under subsection 7a71 the ,director shall thereafter1 until the expiration of the periods referred to in paragraphs 7#a7 and 7#b7 of section #acfg7k7 of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7as such period may be extended pursuant to this section71 submit a report to the ,congress on a monthly basis regarding the transition of the enterprises pursuant to this section1 the status of the business of the enterprises1 and the market share of the enterprises4 ,,iv ,multifamily housing finance #dja4 ,establishment of multifamily subsidiaries 7a7 ,formation and governance of multifamily subsidiaries 7#a7 ,federal ,national ,mortgage ,association 7,a7 ,multifamily subsidiary plan ,the ,director of ,ginnie ,mae1 in consultation with the ,secretary of the ,treasury1 shall direct the ,federal ,national ,mortgage ,association to develop a plan1 not later than #ahj days after the date of enactment of this ,act1 to establish a multifamily subsidiary for purposes of expeditiously-- 7i7 providing sufficient multifamily financing in the primary1 secondary1 and tertiary geographical markets1 including in rural markets and through a diversity of experienced multifamily lenders2 and 7ii7 establishing a competitive multifamily market for multifamily housing guarantors engaging in multifamily covered securities4 7,b7 ,establishment of multifamily subsidiary ,the ,director shall direct the ,federal ,national ,mortgage ,association to establish a multifamily subsidiary not later than #a year after the date of enactment of this ,act4 7#b7 ,federal ,home ,loan ,mortgage ,corporation 7,a7 ,multifamily subsidiary plan ,the ,director1 in consultation with the ,secretary of the ,treasury1 shall direct the ,federal ,home ,loan ,mortgage ,corporation to develop a plan1 not later than #ahj days after the date of enactment of this ,act1 to establish a multifamily subsidiary for purposes of expeditiously-- 7i7 providing sufficient multifamily financing in the primary1 secondary1 and tertiary geographical markets1 including in rural markets and through a diversity of experienced multifamily lenders2 and 7ii7 establishing a competitive multifamily market for multifamily housing guarantors engaging in multifamily covered securities4 7,b7 ,establishment of multifamily subsidiary ,the ,director shall direct the ,federal ,home ,loan ,mortgage ,corporation to establish a multifamily subsidiary not later than #a year after the date of enactment of this ,act4 7b7 ,transfer of functions 7#a7 ,fannie ,mae multifamily subsidiary 7,a7 ,in general ,notwithstanding the provisions under title ,,iii or any other provision of law1 effective on the date on which the multifamily subsidiary is established under subsection 7a77#a77;,b71 all employees1 functions1 activities1 infrastructure1 property1 including the ,delegated ,underwriting and ,servicing ,lender ,program and other intellectual property1 platforms1 technology1 or any other object or service of the ,federal ,national ,mortgage ,association necessary to the support1 maintenance1 and operation of the multifamily business of the ,federal ,national ,mortgage ,association shall be transferred and contributed1 without cost1 to the multifamily subsidiary4 7,b7 ,capital contribution ,in connection with the transfer required under subparagraph 7,a71 the ,federal ,national ,mortgage ,association shall contribute1 in any form or manner the ,director may determine1 subject to the approval right of the ,secretary of the ,treasury in the ,senior ,preferred ,stock ,purchase ,agreement1 any capital necessary to ensure that the multifamily subsidiary established under subsection 7a77#a77;,b7 has1 in the determination of the ,director1 sufficient capital to carry out its multifamily business1 including the ability to obtain warehouse lines of credit4 7,c7 ,ensuring continuation of ongoing operation of multifamily business 7i7 ,in general ,in carrying out the multifamily business transferred pursuant to subparagraph 7,a71 the multifamily subsidiary established under subsection 7a77#a77;,b7 shall ensure that any such business continues to operate1 as applicable1 consistent with-- 7,i7 the ,delegated ,underwriting and ,servicing ,lender ,program established by the ,federal ,national ,mortgage ,association2 7,,ii7 any other programs1 activities1 and contractual agreements of the enterprises that support the enterprises' provision of liquidity to the multifamily housing market2 and 7,,iii7 the provisions of this title4 7#b7 ,freddie ,mac multifamily subsidiary 7,a7 ,in general ,notwithstanding the provisions under title ,,vi or any other provision of law1 effective on the date on which the multifamily subsidiary is established under subsection 7a77#b77;,b71 all employees1 functions1 activities1 infrastructure1 property1 including the ,capital ,market ,execution ,program ,series ,k ,structured #b,pass-,through ,certificates originated and offered under the ,program ,plus ,lender ,program and other intellectual property1 platforms1 technology1 or any other object or service of the ,federal ,home ,loan ,mortgage ,corporation necessary to the support1 maintenance1 and operation of the multifamily business of the ,federal ,home ,loan ,mortgage ,corporation shall be transferred and contributed1 without cost1 to the multifamily subsidiary4 7,b7 ,capital contribution ,in connection with the transfer required under subparagraph 7,a71 the ,federal ,home ,loan ,mortgage ,corporation shall contribute1 in any form or manner the ,director may determine1 subject to the approval right of the ,secretary of the ,treasury in the ,senior ,preferred ,stock ,purchase ,agreement1 any capital necessary to ensure that the multifamily subsidiary established under subsection 7a77#b77;,b7 has1 in the determination of the ,director1 sufficient capital to carry out its multifamily business1 including the ability to obtain warehouse lines of credit4 7,c7 ,ensuring continuation of ongoing operation of multifamily business 7i7 ,in general ,in carrying out the multifamily business transferred pursuant to subparagraph 7,a71 the multifamily subsidiary established under subsection 7a77#b77;,b7 shall ensure that any such business continues to operate1 as applicable1 consistent with-- 7,i7 the ,capital ,market ,execution ,program ,series ,k ,structured #b,pass-,through ,certificates originated and offered under the ,program ,plus ,lender ,program established by the ,federal ,home ,loan ,mortgage ,corporation2 7,,ii7 any other programs1 activities1 and contractual agreements of the enterprises that support the enterprises' provision of liquidity to the multifamily housing market2 and 7,,iii7 the provisions of this title4 7c7 ,multifamily subsidiaries 7#a7 ,in general ,the multifamily subsidiaries established by the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation under subsection 7a7 may retain a limited multifamily mortgage loan portfolio to-- 7,a7 aggregate mortgage loans for pooled securities executions2 7,b7 implement pilot mortgage loan programs and other risk-sharing transactions and product modification testing2 7,c7 engage in the financing of properties with rent-regulatory restrictions1 off-campus student housing1 and senior and assisted living developments2 and 7,d7 perform additional activities as may be established by the ,director for the purpose of facilitating the continuation of existing multifamily activities4 7#b7 ,portfolio reduction applicability ,for purposes of expeditiously meeting the criteria under clauses 7i7 and 7ii7 of paragraphs 7#a77;,a7 and 7#b77;,a7 of subsection 7a71 the multifamily subsidiaries established under subsection 7a7 shall not be subject to any portfolio reduction required under title ,,iii4 #djb4 ,disposition of multifamily businesses 7a7 ,authority ,to manage disposition of multifamily businesses ,notwithstanding any provision of title ,,iii or any other provision of law1 the ,director may1 on or before the certification date1 manage the sale1 transfer1 or disposition for value of property1 including intellectual property1 technology1 platforms1 and legacy systems1 infrastructure and processes of an enterprise relating to the operation and maintenance of the multifamily business of an enterprise4 7b7 ,required establishment of well-,functioning multifamily covered security market ,in exercising the authority in subsection 7a71 the ,director shall manage any disposition of the multifamily business of an enterprise in a manner consistent with-- 7#a7 the establishment of a well-functioning multifamily covered security market2 7#b7 the provision of broad access to multifamily financing2 and 7#c7 facilitating competition in the multifamily covered security market by-- 7,a7 providing open access to performance information on the legacy multifamily business of an enterprise2 7,b7 providing for reasonable licensing of the multifamily proprietary systems of an enterprise2 and 7,c7 setting market share limitations1 fees1 or additional capital standards on multifamily business assets that were sold1 transferred1 or disposed4 #djc4 ,approval and supervision of multifamily guarantors 7a7 ,in general ,the ,director shall develop1 adopt1 publish1 and enforce standards for the approval by the ,director of multifamily guarantors to-- 7#a7 issue securities collateralized by eligible multifamily mortgage loans2 and 7#b7 guarantee the timely payment of principal and interest on such securities collateralized by eligible multifamily mortgage loans and insured by ,ginnie ,mae4 7b7 ,required standards ,the standards required under paragraph 7#a7 shall include standards sufficient to ensure that-- 7#a7 each multifamily guarantor is well-capitalized2 and 7#b7 credit risk-sharing levels under any such guarantees are commensurate with such levels under the ,delegated ,underwriting and ,servicing ,lender ,program of the ,federal ,national ,mortgage ,association and the ,capital ,market ,execution ,program ,series ,k ,structured #b,pass-,through ,certificates originated and offered under the ,program ,plus ,lender ,program of the ,federal ,home ,loan ,mortgage ,corporation4 7c7 ,pricing ,ginnie ,mae shall charge a guarantee fee for guarantees provided pursuant to this section and such fee shall be determined by ,ginnie ,mae-- 7#a7 in the same manner and using the same procedures used pursuant to title ,,ii to determine guarantee fees for securities backed by single-family housing mortgages1 with such changes as ,ginnie ,mae determines to be necessary to account for the differences between the single-family guarantee business and the multifamily guarantee business2 and 7#b7 taking into account the differences between the guarantee fees structures of the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation4 7d7 ,distinctions ,the ,director shall take into account1 in carrying out this section1 in providing any issuing platform1 and in establishing any requirements relating to the guarantee of securities collateralized by eligible multifamily mortgage loans1 the particular nature and characteristics of such securities and loans1 as distinguished from eligible mortgages and securities guaranteed pursuant to title ,,ii1 and as may be necessary to accommodate the multifamily housing financing market4 #djd4 ,other forms of multifamily risk-sharing ,the ,director may establish such other methods and manner of risk-sharing and risk transfer relating eligible multifamily mortgage loans1 in addition to the methods and manners authorized under this title1 as may be appropriate taking into consideration the particular nature and characteristics of the multifamily housing finance market1 which may include any risk-sharing activities of the ,federal ,national ,mortgage ,association and the ,federal ,home ,loan ,mortgage ,corporation relating to the multifamily housing business4 #dje4 ,ginnie ,mae securitization of ,,fha risk-sharing loans 7a7 ,qualified participating entities risk-,sharing program ,paragraph 7#h7 of section #edb7;b7 of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#bb7;b77#h77 is amended to read as follows3 7#h7 ,ginnie mae securitization 7,a7 ,prohibition ,the ,government ,national ,mortgage ,association shall not securitize any multifamily loans insured or reinsured under this subsection1 except as provided in subparagraph 7,b74 7,b7 ,authority ,the ,government ,national ,mortgage ,association may1 at the discretion of the ,director of ,ginnie ,mae1 securitize any multifamily loan1 provided that-- 7i7 the ,federal ,housing ,administration provides mortgage insurance based on the unpaid principal balance of the loan1 as shall be described in the risk-sharing agreement2 7ii7 the ,federal ,housing ,administration shall not require an assignment fee for mortgage insurance claims related to the securitized mortgages2 and 7iii7 any successors and assigns of the risk-sharing partner 7including the holders of credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee therein named7 shall not assume any obligation under the risk-sharing agreement and may assign any defaulted loan to the ,federal ,housing ,administration in exchange for payment of the mortgage insurance claim4 ,the risk-sharing agreement shall provide for reimbursement to ,ginnie ,mae by the risk-sharing partner or partners for either all or a portion of the losses incurred on the loans insured4 4 7b7 ,authority ,paragraph 7#f7 of section #edb7;c7 of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#bb7;c77 is amended to read as follows3 7#f7 ,ginnie ,mae securitization ,the ,government ,national ,mortgage ,association may1 at the discretion of the ,director of ,ginnie ,mae1 securitize any multifamily loan insured under this subsection1 provided that-- 7,a7 the ,federal ,housing ,administration provides mortgage insurance based on the unpaid principal balance of the loan1 as shall be described by regulation2 7,b7 the ,federal ,housing ,administration shall not require an assignment fee for mortgage insurance claims related to the securitized mortgages2 and 7,c7 any successors and assigns of the risk-sharing partner 7including the holders of credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee therein named7 shall not assume any obligation under the risk-sharing agreement and may assign any defaulted loan to the ,federal ,housing ,administration in exchange for payment of the mortgage insurance claim4 ,the risk-sharing agreement shall provide for reimbursement to ,ginnie ,mae by the risk-sharing partner or partners for either all or a portion of the losses incurred on the loans insured4 4 7c7 ,amendment to ,ginnie ,mae charter act ,clause 7ii7 of the first sentence of section #cjf7;g77#a7 of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agba7;g77#a77 is amended-- 7#a7 by striking the semicolon and inserting a comma2 and 7#b7 by inserting before the period at the end the following3 1 or which are insured under subsection 7b7 or 7c7 of section #edb of the ,housing and ,community ,development ,act of #aiib 7#ab ,u4,s4,c4 #agaez-#bb71 subject to the terms of paragraph 7#h7 or 7#f71 respectively1 of such subsection4 ,v ,affordable ,housing #eja4 ,affordable housing allocations 7a7 ,fee and allocation of amounts ,in addition to any fees for the provision of insurance established in accordance with title ,,ii1 in each fiscal year the ,platform shall-- 7#a7 charge and collect a fee in an amount equal to #aj basis points for each dollar of the outstanding principal balance of-- 7,a7 all eligible mortgage loans that collateralize securities insured under this ,act2 and 7,b7 all other mortgage loans that collateralize securities on which ,ginnie ,mae guarantees the timely payment of principal and interest pursuant to title ,,iii of the ,national ,housing ,act 7#ab ,u4,s4,c4 #agaf et seq472 and 7#b7 allocate or otherwise transfer1 on an annual basis-- 7,a7 #ge percent of such fee amounts to the ,secretary of ,housing and ,urban ,development to fund the ,housing ,trust ,fund established under section #acch of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh72 7,b7 #ae percent of such fee amounts to the ,secretary of the ,treasury to fund the ,capital ,magnet ,fund established under section #acci of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defi72 and 7,c7 #aj percent of such fee amounts to the ,ginnie ,mae to fund the ,market ,access ,fund established under section #ejd of this ,act4 7b7 ,continuing obligation ,the fee required to be charged under subsection 7a7 shall be collected for the life of the security4 7c7 ,suspension of contributions ,the ,director may temporarily suspend1 for an initial period of one year1 allocations under subsection 7a77#b7 upon the submission by the ,director to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives of a written determination by the ,director that such allocations are contributing1 or would contribute1 to the financial instability of the insurance ,fund established under section #bjb7;g74 ,the ,director may continue such suspension for additional periods1 each up to one year in length1 pursuant to the same submission and determination requirements4 7d7 ,rule of construction ,the cost of the fee required to be charged under subsection 7a7 shall not be borne by eligible borrowers4 #ejb4 ,housing ,trust ,fund ,section #acch of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defh7 is amended-- 7#a7 in subsection 7a77#a7-- 7,a7 in the first sentence1 by inserting or pursuant to section #eja of the ,partnership to ,strengthen ,homeownership ,act of #bjad after section #accg2 and 7,b7 in the second sentence1 by inserting federally-recognized tribes and after grants to2 7#b7 by striking subsection 7b7 and inserting the following3 7b7 ,reserved4 2 7#c7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by striking ,except as provided in subsection 7b71 the and inserting ,the2 7,b7 in paragraph 7#b7-- 7i7 by striking 7as such term is defined in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiig 7#be ,u4,s4,c4 #dajc772 and 7ii7 by adding at the end the following3 ,an ,indian tribe receiving grant amounts under this subsection may designate a federally recognized tribe or a tribally designated housing entity to receive such grant amounts4 ,nothing in this subsection shall limit or be construed to limit the ability of an ,indian tribe or a tribally designated housing entity from being a permissible designated recipient of grant amounts provided by a ,state under this section42 7,c7 in paragraph 7#c7-- 7i7 in the heading1 by inserting ,indian tribes and before ,states2 7ii7 in subparagraph 7,a71 by striking ,the ,secretary shall and insert the following3 7i7 ,minimum tribal distributions 7,i7 ,in general ,the ,secretary1 acting through the ,office of ,native ,american ,programs1 shall distribute via competitive grants the amounts determined under subclause 7,,ii7 and made available under this subsection to federally recognized tribes and tribally designated housing entities4 7,,ii7 ,amounts ,the total amount required to be distributed under this subclause for a fiscal year shall be the greater of #bj1jjj1jjj1 or #b percent of the total amount of amounts allocated for the ,housing ,trust ,fund under this section4 7,,iii7 ,use of amounts ,competitive grant amounts received by a federally recognized tribe or a tribally designated housing entity under this clause may be used1 or committed to use1 only for those activities that are identified as eligible affordable housing activities under section #bjb of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dacb74 7,,iv7 ,evaluation of applications 7aa7 ,in general ,in evaluating any application for the receipt of competitive grant amounts authorized under this clause1 the ,secretary1 acting through the ,office of ,native ,american ,programs1 shall consider with respect to the federally recognized tribe applicant or tribally designated housing entity applicant and to ,indian reservations and other ,indian areas associated with the federally recognized tribe applicant or served by the tribally designated housing entity applicant evaluation criteria1 including the following3 7,,aa7 ,level of poverty on the ,indian reservation or in the ,indian area4 7,,bb7 ,level of unemployment on the ,indian reservation or in the ,indian area4 7,,cc7 ,condition of housing stock on the ,indian reservation or in the ,indian area4 7,,dd7 ,level of overcrowded housing on the ,indian reservation or in the ,indian area1 as measured by the number of households in which the number of persons per room is greater than one4 7,,ee7 ,presence and prevalence of black mold on the ,indian reservation or in the ,indian area4 7,,ff7 ,demonstrated experience1 capacity1 and ability of the applicant to manage affordable housing programs1 including multifamily rental housing programs1 homeownership programs1 and programs to assist purchasers with down payments1 closing costs1 or interest rate buy-downs4 7,,gg7 ,demonstrated ability of the applicant to meet the requirements under the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #daja et seq471 including the timely and efficient expenditure of funds4 7,,hh7 ,such other criteria as may be specified by the ,secretary in order to evaluate the overall quality of the proposed project1 the feasibility of the proposed project1 and whether the proposed project will address the housing needs on the ,indian reservation or in the ,indian area4 7bb7 ,review of data ,in evaluating any application for the receipt of competitive grant amounts authorized under this clause1 the ,secretary1 acting through the ,office of ,native ,american ,programs1 shall permit a federally recognized tribe applicant or a tribally designated housing entity applicant to supplement or replace1 in whole or in part1 any data compiled and produced by the ,bureau of the ,census and upon which the ,secretary1 acting through the ,office of ,native ,american ,program1 relies1 provided such tribally-collected data meets the ,department of ,housing and ,urban ,development's standards for accuracy4 7,v7 ,treatment of funds ,notwithstanding any other provision of law1 competitive grant amounts received under this clause shall not be considered ,federal funds for purposes of matching other ,federal sources of funds4 7,,vi7 ,rule of construction ,the requirements under clause 7ii71 subparagraphs 7,b7 and 7,c7 of this paragraph1 and paragraphs 7#d7 through 7#h7 and paragraph 7#aj77;,a7 of this subsection shall not apply to any amounts distributed under this clause to a federally recognized tribe or a tribally designated housing entity4 7ii7 ,state distributions ,from any amounts remaining in the ,housing ,trust ,fund after the distribution of the amounts required under clause 7i71 the ,secretary shall 2 7iii7 in subparagraph 7,b71 by striking subparagraph 7,a7 and inserting subparagraph 7,a77ii72 and 7iv7 in subparagraph 7,c71 by striking subparagraph 7,a7 and inserting subparagraph 7,a77ii72 7,d7 in paragraph 7#d7-- 7i7 in subparagraph 7,b71 by striking other than fiscal year #bjji2 and 7ii7 by striking subparagraph 7,c71 and inserting the following3 7,c7 ,minimum ,state allocations 7i7 ,in general ,except as provided in clause 7ii71 if the formula amount determined under paragraph 7#c7 for a fiscal year would allocate less than #aj1jjj1jjj to any of the #ej ,states of the ,united ,states or the ,district of ,columbia1 the allocation for such ,state of the ,united ,states or the ,district of ,columbia shall be the greater of #aj1jjj1jjj1 or #a percent of the total amount of amounts allocated for the ,housing ,trust ,fund under this section and the increase in any such allocation shall be deducted pro rata from the allocations made to all other of the ,states 7as such term is defined in section #acjc74 7ii7 ,exception ,if the allocation to the ,housing ,trust ,fund under section #eja7;a77#b77;,a7 of the ,partnership to ,strengthen ,homeownership ,act of #bjad for a fiscal year is less than #a1jjj1jjj1jjj1 the minimum allocation to any of the #ej ,states of the ,united ,states or the ,district of ,columbia shall be the greater of #e1jjj1jjj or #a percent of the total amount of amounts allocated for the ,housing ,trust ,fund under this section and the increase in any such allocation shall be deducted pro rata from the allocations made to all other of the ,states 7as such term is defined in section #acjc74 2 7,e7 in paragraph 7#g77;,b77iv71 by striking section #acb and inserting section #aacb2 and 7,f7 by adding at the end the following3 7#aa7 ,rule of construction ,nothing in this subsection shall be construed to limit the ability of a federally recognized tribe or a tribally designated housing entity from receiving grant amounts provided by a ,state under this section4 2 and 7#d7 in subsection 7f71 by adding at the end the following3 7#g7 ,tribal terms 7,a7 ,in general ,the terms federally recognized tribe1 ,indian area1 ,indian tribe1 and tribally designated housing entity have the same meaning as in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 7,b7 ,indian reservation ,the term ,indian reservation means land subject to the jurisdiction of an ,indian tribe4 4 #ejc4 ,capital ,magnet ,fund ,section #acci of the ,safety and ,soundness ,act 7#ab ,u4,s4,c4 #defi7 is amended-- 7#a7 in subsection 7b77#a71 by inserting or section #eja of the ,partnership to ,strengthen ,homeownership ,act of #bjad after section #accg2 7#b7 in subsection 7c77#b71 by inserting and tribal after rural2 and 7#c7 in subsection 7h77#b77;,a71 by inserting and tribal after rural4 7#g7 ,tribal terms 7,a7 ,in general ,the terms federally recognized tribe1 ,indian area1 ,indian tribe1 and tribally designated housing entity have the same meaning as in section #d of the ,native ,american ,housing ,assistance and ,self-,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc74 7,b7 ,indian reservation ,the term ,indian reservation means land subject to the jurisdiction of an ,indian tribe4 4 #ejd4 ,market ,access ,fund 7a7 ,establishment ,ginnie ,mae shall establish a fund1 to be known as the ,market ,access ,fund4 7b7 ,deposits ,the ,market ,access ,fund shall be credited with-- 7#a7 the share of the fee charged and collected by the ,platform under section #eja7;a77#a77;,b77iii72 and 7#b7 such other amounts as may be appropriated or transferred to the ,market ,access ,fund4 7c7 ,purpose ,amounts in the ,market ,access ,fund shall be eligible for use by grantees to address the homeownership and rental housing needs of extremely low-1 very low-1 low-1 and moderate-income and underserved or hard-to-serve populations by-- 7#a7 providing grants and loans for research1 development1 and pilot testing of innovations in consumer education1 product design1 underwriting1 and servicing2 7#b7 offering additional credit support for certain eligible mortgage loans or pools of eligible mortgage loans1 such as by covering a portion of any capital required to obtain insurance from the ,ginnie ,mae under this ,act1 provided that amounts for such additional credit support do not replace borrower funds required of an eligible mortgage loan2 7#c7 providing grants and loans1 including through the use of pilot programs of sufficient scale1 to support the research and development of sustainable homeownership and affordable rental programs1 which programs shall include manufactured homes purchased through real estate and personal property loans and manufactured homes used as rental housing1 provided that such grant or loan amounts are used only for the benefit of families whose income does not exceed #abj percent of the median income for the area as determined by ,ginnie ,mae1 with adjustments for family size2 7#d7 providing limited credit enhancement1 and other forms of credit support1 for product and services that-- 7,a7 will increase the rate of sustainable homeownership and affordable rental housing1 including manufactured homes purchased through real estate and personal property loans and manufactured homes used as rental housing1 by individuals or families whose income does not exceed #abj percent of the area median income as determined by ,ginnie ,mae1 with adjustments for family size2 and 7,b7 might not otherwise be offered or supported by a pilot program of sufficient scale to determine the viability of such products and services in the private market2 7#e7 providing housing counseling by a ,,hud-approved housing counseling agency2 and 7#f7 providing incentives to achieve broader access to credit4 7d7 ,annual report ,the ,director of ,ginnie ,mae shall1 on an annual basis1 report to ,congress on the performance and outcome of grants1 loans1 or credit support programs funded by the ,market ,access ,fund in accordance with subsection 7c71 including an evaluation of how each grant1 loan1 or credit support program-- 7#a7 succeeded in meeting or failed to meet the needs of certain populations1 especially extremely low-1 very low-1 low-1 and moderate-income and underserved or hard-to-serve populations2 and 7#b7 succeeded in maximizing or failed to maximize the leverage of public investment made for each such grant1 loan1 or credit support program4 ,,vi ,general ,provisions #fja4 ,rule of construction regarding ,senior ,preferred ,stock ,purchase ,agreements ,nothing in this ,act shall be construed to alter1 supersede1 or interfere with the final ruling of a court of competent jurisdiction with respect to any provision of the ,senior ,preferred ,stock ,purchase ,agreement or amendments thereof of an enterprise4 #fjb4 ,treatment of community development financial institution 7a7 ,amendment ,section #aj7;a7 of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adcj7;a77 is amended-- 7#a7 in paragraph 7#b77;,b71 by inserting or community development financial institution 7as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb77 after community financial institution2 and 7#b7 in paragraph 7#c77;,e71 by inserting or community development financial institution 7as defined in section #ajc of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjb77 after community financial institution4 7b7 ,effective date ,the amendment made by subsection 7a7 shall take effect on the certification date4